Obligation to Submit Notification Form Regarding the Real Beneficiary
Summary: With the Tax Procedure Law General Communiqué No. 529 published in the Official Gazette dated 13.07.2021 by the Revenue Administration, legal entities and organizations without legal personality are obliged to submit the real beneficiary information notification and the procedures and principles regarding the definition of the real user have been determined.
Actual beneficiary
Refers to the natural person or persons who ultimately control or have ultimate influence over legal persons or entities without legal personality.
Identification of the actual beneficiary
1) For legal entities;
a) Real person partners of the legal entity holding shares exceeding twenty-five percent,
b) If it is suspected that the natural person partner holding more than twenty-five percent of the shares of the legal entity is not the real beneficiary, or if there is no natural person partner holding this percentage of shares, the natural person or persons who ultimately control the legal entity,
c) In cases where the actual beneficiary cannot be identified under subparagraphs (a) and (b), the natural person or persons with the highest executive authority,
is considered as the real beneficiary and is subject to notification.
2) Entities such as business partnerships without legal personality;
a) Real person or persons who ultimately control entities without legal personality,
b) In case the real beneficiary cannot be identified within the scope of subparagraph (a), the real person or persons with the highest level of executive authority in the organization without legal personality,
is considered as the real beneficiary in the capacity of senior manager and is subject to notification.
3) Trusts and similar organizations;
Founders, trustees, managers, auditors or those who have the title of beneficiary or those who have influence over these entities are considered as real beneficiaries and are subject to notification.
Those who are obliged to submit real beneficiary information notifications
Real beneficiary information notification, active as of 01.08.2021, when the notification period started (including those in liquidation);
a) Corporate taxpayers,
b) The person authorized to represent the company or partner in collective companies, one of the limited partners in limited partnership companies and the person with the highest partnership share on behalf of ordinary partnerships, managers, trustees or representatives of trusts and similar entities established in foreign countries that have their headquarters in Turkey or have a resident manager in Turkey,
they have to give.
In addition, in the Regulation on Measures, it is also stated that the persons who are deemed liable in the implementation of the Law on Prevention of Laundering Proceeds of Crime dated 11/10/2006 and numbered 5549;
a) Banks,
b) Institutions other than banks authorized to issue debit cards or credit cards,
c) Authorized institutions specified in the foreign exchange legislation,
ç) Financing and factoring companies,
d) Capital market intermediary institutions and portfolio management companies,
e) Payment institutions and electronic money institutions,
f) Investment trusts,
g) Insurance, reinsurance and pension companies and insurance and reinsurance brokers,
ğ) Financial leasing companies,
h) Institutions providing clearing, settlement and custody services within the framework of capital markets legislation,
ı) Borsa İstanbul Anonim Şirketi, limited to the custody services related to the Precious Metals and Precious Stones Market,
i) Post and Telegraph Organization Inc. and cargo companies,
j) Asset management companies,
k) Those who buy and sell precious metals, stones or jewelry and those who act as intermediaries in these transactions,
l) General Directorate of Mint and Stamp Printing House limited to the activity of minting Republican gold coins and Republican jewelry gold coins,
m) Precious metals brokerage houses,
n) Those engaged in the purchase and sale of real estate for commercial purposes and those who act as intermediaries in these transactions,
o) Those engaged in the purchase and sale of all kinds of sea, air and land transportation vehicles, including construction machinery, and those who act as intermediaries in these transactions,
ö) Those who are engaged in the purchase and sale of historical artifacts, antiques and works of art or auctioneers of these,
p) Those operating in the field of games of chance and betting, including the General Directorate of National Lottery Administration, Turkish Jockey Club and Spor Toto Organization,
r) Sports clubs,
s) Noterler,
ş) Except for the information not contrary to the provisions of other laws in terms of the right of defense and except for the information obtained as a result of the professional work performed within the scope of the first paragraph of Article 35 of the Attorneyship Law No. 1136 dated 19/3/1969 and alternative dispute resolution methods; independent lawyers limited to the realization of financial transactions related to the purchase and sale of real estate, the establishment and removal of limited real rights, the establishment and merger of companies, foundations and associations and their management, transfer and liquidation, and the management of banks, securities and all kinds of accounts and the assets in these accounts,
t) Independent accountants, independent accountants, certified public accountants and sworn public accountants working without being affiliated to an employer,
u) Independent audit institutions authorized to audit financial markets,
ü) Crypto asset service providers,
v) Savings finance companies,
and their branches, agencies, representatives and commercial agents and similar affiliated units are obliged to inform the Revenue Administration of the real beneficiary information of the transactions carried out by their customers when requested by the Revenue Administration.
Branches, agencies, representatives, commercial agents, commercial representatives and similar affiliated units of the obligor headquartered abroad are obliged to inform the Revenue Administration of the real beneficiary information of the transactions carried out by their customers when requested by the Revenue Administration.
Period and time of notification
Corporate taxpayers are obliged to report the real beneficiary information in their provisional tax returns and annual corporate tax returns.
Taxpayers other than corporate taxpayers and other persons are obliged to notify the real beneficiary information to the Revenue Administration electronically with a form until the end of August of each year.
In the event that a new taxpayer is established or there is a change in the information previously included in the notification, they must notify within one month following the establishment of the new taxpayer or the date of the information change.
All taxpayers and other persons, including corporate taxpayers, who are obliged to provide real beneficiary information first notifications by the end of 31.08.2021 at the latest The real beneficiary must notify the Revenue Administration electronically.
Other considerations and penalties
The information subject to the real beneficiary information notification must be kept by taxpayers for 5 years from the beginning of the calendar year following the date of notification.
The relevant penalty provisions of the Law No. 213 will be applied to taxpayers who do not report the information required to be reported within the scope of the regulations made in the Communiqué, or who make incomplete or misleading notifications.
In the event that it is determined that there are incorrect records regarding the real beneficiary information of the taxpayers and other persons mentioned in Article 4 as a result of the research, examination and international information exchange to be carried out by the Financial Crimes Investigation Board Presidency and the research and examinations to be carried out by those authorized to carry out tax examinations, the Revenue Administration will be informed in order to take the necessary penal actions and make the necessary changes in the registry records.
First-time preparation of the notification form for the real user
All taxpayers, including corporate taxpayers who are obliged to provide real beneficiary information, should submit their first notification,
– Internet Tax Office
– Other Notification and Information Entries
– Notification Form for Real Beneficiary
by filling out the form below until the end of 31.08.2021 at the latest by following the steps
they will do.
NOTIFICATION FORM FOR THE REAL BENEFICIARY
About who can submit the Real Beneficiary Notification Form
• Income taxpayers other than the taxpayers listed in the first paragraph of Article 4 of the General Communiqué No. 529 of the Tax Procedure Law titled “those who are obliged to submit real beneficiary information notification” are not obliged to submit a notification.
• The taxpayers listed in the first paragraph of Article 4 of the Tax Procedure Law General Communiqué No. 529 titled “those who are obliged to submit real beneficiary information notification” are listed below.
a) Corporate taxpayers,b) The person authorized to represent the company or partner in collective companies, one of the limited partners in limited partnership companies and the person with the highest partnership share on behalf of ordinary partnerships, managers, trustees or representatives of trusts and similar entities established in foreign countries that have their headquarters in Turkey or have a resident manager in Turkey.
•Those specified in the second paragraph of Article 4 of the Tax Procedure Law Communiqué No. 529, if requested by the Revenue Administration, are required to inform the Revenue Administration of the real beneficiary information of the transactions carried out by their customers.
• Corporate taxpayers can send this notification form with the company’s existing user code password and password, or they can send it through a certified public accountant who has an intermediary and liability agreement or a certified public accountant who has an income or corporate tax return certification agreement (full certification agreement).
•Collective companies, limited partnership companies and ordinary partnerships can send this notification form with the company’s existing user code password and password, or they can send it through certified public accountants with whom they have an intermediary and liability agreement or sworn public accountants with whom they have an income or corporate tax return certification agreement (full certification agreement).• Managers, trustees or representatives of trusts and similar organizations established in foreign countries with resident managers in Turkey will be able to submit the Notification Form for the Real Beneficiary via the Internet tax office by obtaining a user code password and password from any tax office.
Information on the Notification Form for the Real Beneficiary
1. This form shall be filled out in accordance with the provisions of the Tax Procedure Law General Communiqué No. 529.
2. When filling in this form:
>> Legal entities:
a) Real person shareholders of the legal entity holding shares exceeding twenty-five percent, including bearer bonds,
b) If it is suspected that the natural person partner holding more than twenty-five percent of the shares of the legal entity is not the real beneficiary, or if there is no natural person partner holding this percentage of shares, the natural person or persons who ultimately control the legal entity,
c) In cases where the real beneficiary cannot be identified within the scope of subparagraphs (a) and (b), the real person or persons with the highest level of executive authority shall be reported as the real beneficiary and Part A. of the form shall be filled in about these persons.
>> In entities such as ordinary partnerships or business partnerships without legal personality:
a) Real person or persons who ultimately control entities without legal personality,
b) In the event that the real beneficiary cannot be identified within the scope of subparagraph (a), the real person or persons with the highest level of executive authority in the entity without legal personality will be notified as the real beneficiary in the capacity of senior manager, and these persons will fill in section A. of the form.
>> In trusts and similar organizations; founders, trustees, managers, auditors or those who have the title of beneficiary or those who have influence over these organizations will be reported as real beneficiaries and section B. of the form will be filled in about these persons.
3. If there is a change in the real beneficiary information, a notification must be made in accordance with paragraph 3 of Article 6 and paragraph 9 of Article 7 of the General Communiqué No. 529 of the TPL.4. If the real beneficiary status of the person whose information is provided in the aforementioned company stems from another company in which he/she is a shareholder, these company(ies) should also be indicated in the disclosure field and the shareholding ratio should be calculated as described in the example. Person X, who is a 40% shareholder of a company B, which owns 80% of the shares of company A, should be declared as 80% x 40% = 32% shareholder in the notification regarding company A. In addition, through which company(ies) he/she is an indirect shareholder should be indicated in the explanation field on the table.
In the event that a natural person’s shareholding is both direct and indirect due to a partnership with another legal entity, the “Form of Partnership” section of the form should be reported as “direct and indirect” and the “Shareholding Ratio in the Company” should be indicated as “Direct and indirect”. the total value of direct and indirect shares calculated as above.
5. In the case of trusts and trust-like legal entities, if the real beneficiary is a legal entity, the reason for the legal entity being the real beneficiary and the share ratio should be specified in the explanation field. Example: If the trustee of a trust established abroad is Company C, natural person Y, who owns more than 25% of the shares of Company C, is the real beneficiary of the trust.The relevant Tax Procedure Law Communiqué is available here.
Regards,
BİLGENER
